**1.1 Basel Committee of Banking Supervision framework for internal control systems**

Following significant losses in banking organizations, the concerns to minimize such occurrences triggered the coming together of experts from various countries to develop a framework that will guide the conduct of banking business. The motivation behind the development of the framework for internal control systems is to address and enhance supervisory issues that encourage sound risk management practices [1]. The confidence in an effective and functioning control system is its ability to prevent and enable earlier detection of catastrophic but avoidable potential losses. Thus the framework is meant for member countries worldwide to use in evaluating internal control systems among banks albeit the situational circumstances pertaining to different countries. The Basel Committee on Banking Supervision which is a subcommittee of the risk management committee of the Bank for International Settlements outline 13 principles for assessing internal control systems captioned under five main areas or elements. The broad areas include management oversight and the control culture, risk recognition and assessment, control activities and segregation of duties, information and communication and monitoring activities.
